Promissory note character and borrower-relief legislation can validly operate on a decree after merger of liability.

An instrument containing an unconditional promise to pay, with no order directing a drawee to pay, is a promissory note; the presence of the word "hundi" on the stamp or an endorsement marked "accepted" does not alter that character. The Bengal Money-lenders Act, 1940 was discussed as validly operating on the decree itself after the original liability had merged in it, so borrower-relief provisions could reopen the decree and grant instalment relief. The legislative power to regulate money-lending extended to such decree-based relief, with any effect on the underlying promissory note treated as incidental. The decree was therefore adjustable by ceasing post-decretal interest and allowing payment by instalments.

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Issues: (i) Whether the instruments executed by the defendants were promissory notes or bills of exchange. (ii) Whether the Bengal Legislature had power to authorise reopening of the decree and grant instalment relief under the Bengal Money-lenders Act, 1940.

Issue (i): Whether the instruments executed by the defendants were promissory notes or bills of exchange.

Analysis: The instruments contained a promise to pay and no order directing a drawee to pay. The word "hundi" on the stamp did not control the character of the document, and the endorsement "accepted" did not convert a promise into an order. On the statutory definitions, an instrument with an unconditional promise signed by the maker is a promissory note, while a bill of exchange requires an unconditional order.

Conclusion: The instruments were promissory notes and not bills of exchange.

Issue (ii): Whether the Bengal Legislature had power to authorise reopening of the decree and grant instalment relief under the Bengal Money-lenders Act, 1940.

Analysis: The decree had already replaced the original liability under the notes, and the relief sought operated upon the decree rather than directly upon the promissory notes. The Act's power to regulate money-lending and grant borrower relief could validly affect decrees passed on such loans, and the impugned provisions fell within the legislative field available to the Provincial Legislature with the Governor-General's assent. Any impact on promissory notes was incidental to the object of borrower relief.

Conclusion: The Bengal Legislature had the requisite power, and the relief could be granted.

Final Conclusion: The decree was liable to be varied so that post-decretal interest ceased and the balance became payable by instalments. The application succeeded.

Ratio Decidendi: Where a decree has merged the underlying liability on a promissory note, legislation enacted for borrower relief may validly regulate the decree itself, and an instrument containing only a promise to pay remains a promissory note notwithstanding the presence of the word "accepted" or a hundi stamp.

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